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The Walt Disney Co (The Walt Disney Co) Interest Coverage

: 5.56 (As of Dec. 2023)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Walt Disney Co's Operating Income for the three months ended in Dec. 2023 was $2,936 Mil. The Walt Disney Co's Interest Expense for the three months ended in Dec. 2023 was $-528 Mil. The Walt Disney Co's interest coverage for the quarter that ended in Dec. 2023 was 5.56. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Walt Disney Co's Interest Coverage or its related term are showing as below:

DIS' s Interest Coverage Range Over the Past 10 Years
Min: 2.54   Med: 18.98   Max: 49.9
Current: 4.88


DIS's Interest Coverage is ranked worse than
67.54% of 610 companies
in the Media - Diversified industry
Industry Median: 12 vs DIS: 4.88

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


The Walt Disney Co Interest Coverage Historical Data

The historical data trend for The Walt Disney Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

The Walt Disney Co Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.10 2.54 2.60 4.37 4.56

The Walt Disney Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.29 4.51 5.25 4.16 5.56

Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Walt Disney Co Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Walt Disney Co's Interest Coverage falls into.



The Walt Disney Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Walt Disney Co's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, The Walt Disney Co's Interest Expense was $-1,973 Mil. Its Operating Income was $8,992 Mil. And its Long-Term Debt & Capital Lease Obligation was $45,565 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2023 )/Interest Expense (A: Sep. 2023 )
=-1*8992/-1973
=4.56

The Walt Disney Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, The Walt Disney Co's Interest Expense was $-528 Mil. Its Operating Income was $2,936 Mil. And its Long-Term Debt & Capital Lease Obligation was $41,603 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*2936/-528
=5.56

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


The Walt Disney Co  (NYSE:DIS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


The Walt Disney Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of The Walt Disney Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


The Walt Disney Co (The Walt Disney Co) Business Description

Address
500 South Buena Vista Street, Burbank, CA, USA, 91521
Disney operates in three global business segments: entertainment, sports, and experiences. Entertainment and experiences both benefit from franchises and characters the firm has created over the course of a century. Entertainment includes the ABC broadcast network, several cable television networks, and the Disney+ and Hulu streaming services. Within the segment, Disney also engages in movie and television production and distribution, with content licensed to movie theaters, other content providers, or, increasingly, kept in-house for use on Disney's own streaming platform and television networks. The sports segment houses ESPN and the ESPN+ streaming service. Experiences contains Disney's theme parks and vacation destinations, and also benefits from merchandise licensing.
Executives
Sonia L Coleman officer: Sr. EVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Brent Woodford officer: EVP, Control, Fin Plan & Tax 1441 GARDINER LANE, LOUISVILLE KY 40213
Amy Chang director 2100 SEAPORT BLVD., C/O INFORMATICA CORPORATION, REDWOOD CITY CA 94063
Kevin A Lansberry officer: Interim Chief Finan Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Christine M Mccarthy officer: SEVP-Chief Financial Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521-0964
Carolyn Everson director C/O THE HERTZ CORPORATION, 225 BRAE BOULEVARD, PARK RIDGE NJ 07656-0713
Kristina K Schake officer: Sr. EVP and Chief Comm Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Horacio E Gutierrez officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Geoff Morrell officer: SEVP Chf Corp Affairs Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Robert A Chapek officer: Chief Executive Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Paul J Richardson officer: Sr. EVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Calvin Mcdonald director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Robert A Iger director, officer: Chairman and CEO C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1062
Zenia B. Mucha officer: SEVP Corporate Communications 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Mary Jayne Parker officer: SEVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521-0966